The Hindu Business Line : `States assure probe into unorganised equity trading'

The Karnataka Governor, Mr T.N. Chaturvedi, and the SEBI Chairman, Mr G.N. Bajpai, at the `Securities Market Awareness Campaign' and `100th Investors' Meet' in Bangalore on Saturday organised by Bangalore Stock Exchange Ltd. — G.R.N. Somashekar

Bangalore , Aug. 16

THE Securities and Exchange Board (SEBI) Chairman, Mr G.N. Bajpai, said that several State chief ministers have assured him of suitable probe and actions against unorganised equity trading in certain regions.

The State heads have informed the market regulator that official machineries have been "activated to watch out for illegal actions" in equity tradings not undertaken through a regional bourse, Mr Bajpai said.

"We have written to the State Governments" on these "dabba tradings", Mr Bajpai said, adding that it was "very difficult to estimate the size" of such parallel market.

"I believe, in some cases it would be very large," he said declining to detail any estimates. SEBI believes that a parallel equity trading market is currently in existence, where all settlements are closed through cash transaction and do not involve any purchase of stocks.

Meanwhile, the regulator would "immediately" issue a final notification seeking former Alliance fund manager, Mr Samir Arora's ban from the market. The interim ban will expire on August 28.

Declining to detail whether SEBI was scrutinising the role of senior executives of certain companies, which were Mr Arora's favourite picks, Mr Bajpai said, "There is a code of conduct, listing guidelines... law will take its own course."

SEBI had given Mr Arora time till August 28 to file his objections to the order since its issuance.

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